New York attorney general probes perplexing Trump Tower Chicago loan deal

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David Heinzmann, Chicago Tribune
·1 min read
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New York’s attorney general is trying to answer one of the most perplexing questions surrounding the troubled financing of the Trump International Hotel and Tower in Chicago: whether President Donald Trump failed to pay taxes on a $100 million loan deal related to the project.

According to a court filing, Trump’s lender on a high-interest $150 million loan on the Chicago property, Fortress Credit Corp., made a 2012 deal to accept a $48 million payoff — in essence, forgiving more than $102 million in debt.

New York Attorney General Letitia James included the allegation in the Monday filing as she seeks to compel the Trump Organization, and the president’s son, Eric, to provide records and testimony regarding the organization’s tax maneuvering on four properties. In addition to the Chicago tower, the attorney general sought records on a Westchester County (New York) estate, the 40 Wall Street tower in Manhattan, and a Trump golf course in Los Angeles.

James’ investigation began with the early 2019 testimony that former Trump lawyer and fixer Michael Cohen gave to Congress, alleging his former employer had a long-standing practice of grossly undervaluing properties for tax purposes, and grossly overvaluing them when seeking to borrow money. James’ office is one of several government investigative agencies seeking Trump’s tax returns and business records.